The One Ring, a unique, serialized card for Magic the GatheringThe Lord of the Rings themed set has been found, but little is known about the circumstances of its discovery. The only thing certain about the card is that someone somewhere wants to buy it. And that, my friends, can only mean one thing: the helmsman is coming.
Initial reports appear to indicate that The One Ring cardholder, who wishes to remain anonymous, is currently in Ontario, Canada and has engaged the services of an attorney. And that’s a great first step, representatives of Ontario Tax Services
If the card was purchased from a store as part of a blind card game, which in all likelihood was the case, the sale of that card is likely to be treated as a capital gain. The same Canadian tax laws apply whether the card came from the purchase of a single pack (approximately $12.99) or a pack of packs (which peaked at $518 at launch on June 23). After the sale, Canada’s progressive tax rate applies, so 50% of the sale is taxable at 49%.
If our lucky ring-bearer pays out $2 million — currently the highest bid from Europe — he’ll owe about $490,000, according to the tax experts we spoke to.
So what if the bearer of the One Ring could easily find the map – say, at the bottom of a stream or on a flat lake bottom while fishing with a family member? Well, then the full amount of the transaction would be taxable. A sale for $2 million would raise $980,000 for the Canadian government in this scenario.
But what if the wearer was given A family member’s ring – say, a distant uncle – on the eve of his 111th birthday party? In this case, according to a tax expert, the sale can be processed completely tax-free.
So I think the old adage actually holds true: keep it a secret. Keep safe. And keep it for a few generations if you don’t want to pay taxes on it in Canada.
